DILI, 31 july 2022 (TATOLI) – Timor-Leste’s Finance Minister, Rui Gomes, and the World Bank (WB) representative, Bernard Harborne signed a financial agreement worth US$121 million loan for a water supply project in the eastern part of the capital.
“Díli faces several social and environmental challenges. With the increase in the number of population in Dili, The capital’s main problem is access to drinking water at home. the number population that increased caused the loss of control from greater availability of local sanitation services. About 1/3 of the population of Timor-Leste is concentrated in Dili”, Finance Minister, Gomes said, as part of the signing of the agreement, in Aitarak-Laran.
With this problem, Gomes stressed that this memorandum is provided to create conditions and initiate efforts to respond to the problem of water shortages. The project will benefit 82,380 people and build 12,482 meters for families.
The plan starts next October and lasts for seven years intending to develop, improve, and expand the water distribution and piping system in eastern Dili.
“Strategic investments in the infrastructure sector, including wider access to safe drinking water, have been integrated into the 2011-2030 Strategic Development Plan. This plan is a very relevant basis for the eight constitutional government programs. This plan also defines strategic investment modalities through Public-Private Partnerships (PPPs),” he said.
Rui Gomes also highlighted that, apart from the PPP modality, the Executive is still in talks with the Japan International Cooperation Agency (JICA), the Asian Development Bank (AfDB), and the WB, for low-interest loans for financing, investment in infrastructure that will have an impact on the country’s economic growth.
In the last decade, the Government has used soft loans from development partners, totaling US$731 million, of which US$257 million has been implemented, which is 36% of the total amount.
Minister Gomes also explained that in 2012 the Government began to pay off a debt of US$20.3 million at an interest rate of around US$18.4 million.
“The return on investment of the Petroleum Fund as of May this year reached 4.33% per year, compared to the cheapest borrowing costs of 1.57% per year,” he concluded.
Journalist: Jesuinha Xavier
Editor: Maria Auxiliadora/Nelia B
Translation: José Belarmino De Sa
